BUJKA

Business Licenses

Construction Representative Office (BUJKA)

One form of representative office in Indonesia that you can choose is BUJKA (Foreign Construction Business Entity). To open a representative office in Indonesia, a Foreign Construction Company (hereinafter referred to as a “company”) must obtain a Foreign Construction Representative Office License issued by BKPM (Investment Coordinating Board).

Foreign construction companies may set up a Representative Office in Indonesia and obtain a Construction Services Permit (BUJKA), prior to establishing a foreign investment company (PT PMA) in Indonesia. Participation in projects must be through a joint operation with an Indonesian construction company. The BUJKA isissued by the Ministry of Public Works attached to the Investment Coordinating Body (BKPM) and is valid for up to three years and extendable.

Documents required

• Completed application form
• Corporate profile of parent construction company
• Articles of Association of parent construction company (must be legalized at Indonesian Embassy in home country)
• Letter of Recommendation from the Indonesian Embassy in home country of parent company
• Copy of valid business licenses of parent company
• Copy of valid capability index of parent company
• Certificate of capability equivalency results of parent company from the Indonesian National Standards Organization
• Letter of Appointment of the Chief Representative of the Representative Office by the parent company
• Copy of passport or Indonesian identity card (KTP) of the appointed Chief Representative
• Curriculum vitae of the appointed Chief Representative
• Domicile Letter of Representative Office

Prevailing regulation(s)

Regulation of the Minister of Public Works No. 10/PRT/M/2014 regarding the Guidelines for the Granting of Permits for Representatives of Foreign Construction Companies
Law No. 18 of 1999 regarding Construction Services
Regulation of the Minister of Public Works No. 24/PRT/M/2009
Regulation of the Minister of Housing No. 06/Permen/M/2009
Regulation of the Minister of Housing and Public Works No. 22/PRT/ M/2014

BUJKA is allowed to:

• Follow procurement of construction tenders by providing complex, high-risk and / or high-tech construction projects.
• Employ foreign and local employees in accordance with applicable regulations.
• Conduct construction work in accordance with the permission of the Office of Foreign Construction Representatives (consultation, monitoring, or implementation), after forming a bond / joint operation with a national construction company.

The results of BUJKA establishment are as follows:

1. Application reviewed and pay for government tax
2. Obtain BUJKA license
3. Receive domicile letter from the local sub-district
4. Tax ID registration
5. Attain company registration certificate

Steps for Establishing BUJKA in Indonesia

After you have a broad understanding of BUJKA, now you must know the steps that must be taken to register your construction company. Following are the steps to build BUJKA in Indonesia:

• Obtain a certificate of expertise (SKA)
• Obtain construction association membership
• SBU Certificate from LPJK
• BUJKA permit from BKPM
• Domicile Permit
• Taxpayer Identification Number (NPWP)
• Business Establishment Permit (SIUJK)
• Company Registration Number (TDP)

Licenses for BUJKA representative offices are valid for 3 years and can be extended based on existing regulations. After obtaining a license, BUJKA’s representative office is expected to carry out complex, high-risk, or high-tech construction projects in Indonesia (Ministry of Public Works Regulation No.10 / 2014 Article 12).

Because of the special nature of this company, the requirements for the establishment of representative offices in Indonesia are also different. Therefore, you really need legal and professional guidance. Indo-Ned Consultancy will help you to complete all steps in obtaining the documents needed to establish a foreign construction services representative office in Indonesia. Contact us for further assistance